Loans Receivable and Allowance for Loan Losses

The following tables set forth the composition of our loans receivable portfolio, and an aging analysis by accruing and non-accrual loans, by segment and class at the dates indicated.



	At December 31, 2016
	Past Due
	30-59		60-89		90 Days		Total
(In Thousands)	Days		Days		or More		Past Due		Current		Total
Accruing loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,476	$	3,104	$	—	$	4,580	$	212,316	$	216,896
Full documentation amortizing	36,563		8,217		—		44,780		4,300,620		4,345,400
Reduced documentation interest-only	2,974		779		—		3,753		80,416		84,169
Reduced documentation amortizing	27,449		5,222		—		32,671		552,233		584,904
Total residential	68,462		17,322		—		85,784		5,145,585		5,231,369
Multi-family	1,060		795		—		1,855		4,040,386		4,042,241
Commercial real estate	2,043		1,298		—		3,341		720,582		723,923
Total mortgage loans	71,565		19,415		—		90,980		9,906,553		9,997,533
Consumer and other loans (gross):
Home equity and other consumer	1,281		550		—		1,831		133,024		134,855
Commercial and industrial	—		647		—		647		99,087		99,734
Total consumer and other loans	1,281		1,197		—		2,478		232,111		234,589
Total accruing loans	$	72,846	$	20,612	$	—	$	93,458	$	10,138,664	$	10,232,122
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	437	$	—	$	11,605	$	12,042	$	2,048	$	14,090
Full documentation amortizing	2,469		—		42,983		45,452		11,753		57,205
Reduced documentation interest-only	—		—		11,624		11,624		3,768		15,392
Reduced documentation amortizing	1,077		992		35,351		37,420		9,887		47,307
Total residential	3,983		992		101,563		106,538		27,456		133,994
Multi-family	428		611		1,244		2,283		2,098		4,381
Commercial real estate	219		—		—		219		5,117		5,336
Total mortgage loans	4,630		1,603		102,807		109,040		34,671		143,711
Consumer and other loans (gross):
Home equity and other consumer	—		—		4,483		4,483		—		4,483
Commercial and industrial	—		—		42		42		—		42
Total consumer and other loans	—		—		4,525		4,525		—		4,525
Total non-accrual loans	$	4,630	$	1,603	$	107,332	$	113,565	$	34,671	$	148,236
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,913	$	3,104	$	11,605	$	16,622	$	214,364	$	230,986
Full documentation amortizing	39,032		8,217		42,983		90,232		4,312,373		4,402,605
Reduced documentation interest-only	2,974		779		11,624		15,377		84,184		99,561
Reduced documentation amortizing	28,526		6,214		35,351		70,091		562,120		632,211
Total residential	72,445		18,314		101,563		192,322		5,173,041		5,365,363
Multi-family	1,488		1,406		1,244		4,138		4,042,484		4,046,622
Commercial real estate	2,262		1,298		—		3,560		725,699		729,259
Total mortgage loans	76,195		21,018		102,807		200,020		9,941,224		10,141,244
Consumer and other loans (gross):
Home equity and other consumer	1,281		550		4,483		6,314		133,024		139,338
Commercial and industrial	—		647		42		689		99,087		99,776
Total consumer and other loans	1,281		1,197		4,525		7,003		232,111		239,114
Total loans	$	77,476	$	22,215	$	107,332	$	207,023	$	10,173,335	$	10,380,358
Net unamortized premiums and
deferred loan origination costs											36,829
Loans receivable											10,417,187
Allowance for loan losses											(86,100		)
Loans receivable, net											$	10,331,087



	At December 31, 2015
	Past Due
	30-59		60-89		90 Days		Total
(In Thousands)	Days		Days		or More		Past Due		Current		Total
Accruing loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	10,045	$	2,382	$	—	$	12,427	$	401,486	$	413,913
Full documentation amortizing	40,151		10,346		332		50,829		4,602,940		4,653,769
Reduced documentation interest-only	7,254		2,321		—		9,575		266,084		275,659
Reduced documentation amortizing	20,135		4,369		—		24,504		527,566		552,070
Total residential	77,585		19,418		332		97,335		5,798,076		5,895,411
Multi-family	1,662		2,069		—		3,731		4,013,541		4,017,272
Commercial real estate	246		1,689		—		1,935		813,640		815,575
Total mortgage loans	79,493		23,176		332		103,001		10,625,257		10,728,258
Consumer and other loans (gross):
Home equity and other consumer	2,358		502		—		2,860		151,554		154,414
Commercial and industrial	—		—		—		—		91,171		91,171
Total consumer and other loans	2,358		502		—		2,860		242,725		245,585
Total accruing loans	$	81,851	$	23,678	$	332	$	105,861	$	10,867,982	$	10,973,843
Non-accrual loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	1,182	$	—	$	11,359	$	12,541	$	5,834	$	18,375
Full documentation amortizing	3,579		603		32,535		36,717		7,480		44,197
Reduced documentation interest-only	257		579		15,285		16,121		11,451		27,572
Reduced documentation amortizing	2,238		365		14,322		16,925		12,935		29,860
Total residential	7,256		1,547		73,501		82,304		37,700		120,004
Multi-family	725		623		2,441		3,789		3,044		6,833
Commercial real estate	241		—		572		813		3,126		3,939
Total mortgage loans	8,222		2,170		76,514		86,906		43,870		130,776
Consumer and other loans (gross):
Home equity and other consumer	—		—		6,405		6,405		—		6,405
Commercial and industrial	—		—		703		703		—		703
Total consumer and other loans	—		—		7,108		7,108		—		7,108
Total non-accrual loans	$	8,222	$	2,170	$	83,622	$	94,014	$	43,870	$	137,884
Total loans:
Mortgage loans (gross):
Residential:
Full documentation interest-only	$	11,227	$	2,382	$	11,359	$	24,968	$	407,320	$	432,288
Full documentation amortizing	43,730		10,949		32,867		87,546		4,610,420		4,697,966
Reduced documentation interest-only	7,511		2,900		15,285		25,696		277,535		303,231
Reduced documentation amortizing	22,373		4,734		14,322		41,429		540,501		581,930
Total residential	84,841		20,965		73,833		179,639		5,835,776		6,015,415
Multi-family	2,387		2,692		2,441		7,520		4,016,585		4,024,105
Commercial real estate	487		1,689		572		2,748		816,766		819,514
Total mortgage loans	87,715		25,346		76,846		189,907		10,669,127		10,859,034
Consumer and other loans (gross):
Home equity and other consumer	2,358		502		6,405		9,265		151,554		160,819
Commercial and industrial	—		—		703		703		91,171		91,874
Total consumer and other loans	2,358		502		7,108		9,968		242,725		252,693
Total loans	$	90,073	$	25,848	$	83,954	$	199,875	$	10,911,852	$	11,111,727
Net unamortized premiums and
deferred loan origination costs											41,354
Loans receivable											11,153,081
Allowance for loan losses											(98,000		)
Loans receivable, net											$	11,055,081

Our residential mortgage loans consist primarily of interest-only and amortizing hybrid ARM loans. We offer amortizing hybrid ARM loans which initially have a fixed rate for five, seven or ten years and convert into one year ARM loans at the end of the initial fixed rate period and require the borrower to make principal and interest payments during the entire loan term. Prior to 2014, we also offered amortizing hybrid ARM loans with an initial fixed rate period of three years. Prior to the 2010 fourth quarter, we offered interest-only hybrid ARM loans, which have an initial fixed rate for five or seven years and convert into one year interest-only ARM loans at the end of the initial fixed rate period. Our interest-only hybrid ARM loans require the borrower to pay interest only during the first ten years of the loan term. After the tenth anniversary of the loan, principal and interest payments are required to amortize the loan over the remaining loan term. We do not originate one year ARM loans. The ARM loans in our portfolio which currently reprice annually represent hybrid ARM loans (interest-only and amortizing) which have passed their initial fixed rate period. Our hybrid ARM loans may be offered with an initial interest rate which is less than the fully indexed rate for the loan at the time of origination, referred to as a discounted rate. We determine the initial interest rate in accordance with market and competitive factors giving consideration to the spread over our funding sources in conjunction with our overall interest rate risk management strategies. Residential interest-only hybrid ARM loans originated prior to 2007 were underwritten at the initial note rate which may have been a discounted rate. Such loans totaled $45.4 million at December 31, 2016 and $388.0 million at December 31, 2015. We do not originate negative amortization loans, payment option loans or other loans with short-term interest-only periods.

Within our residential mortgage loan portfolio we have reduced documentation loan products, which totaled $731.8 million at December 31, 2016 and $885.2 million at December 31, 2015. Reduced documentation loans are comprised primarily of SIFA (stated income, full asset) loans. To a lesser extent, reduced documentation loans in our portfolio also include SISA (stated income, stated asset) loans, which totaled $114.8 million at December 31, 2016 and $135.7 million at December 31, 2015. SIFA and SISA loans require a prospective borrower to complete a standard mortgage loan application. Reduced documentation loans require the receipt of an appraisal of the real estate used as collateral for the mortgage loan and a credit report on the prospective borrower. In addition, SIFA loans require the verification of a potential borrower’s asset information on the loan application, but not the income information provided. During the 2007 fourth quarter, we stopped offering reduced documentation loans.

Included in loans receivable are loans in the process of foreclosure collateralized by residential real estate property with a recorded investment of $73.4 million at December 31, 2016 and $51.0 million at December 31, 2015.

Accrued interest receivable on all loans totaled $26.9 million at December 31, 2016 and $27.6 million at December 31, 2015. If all non-accrual loans at December 31, 2016, 2015 and 2014 had been performing in accordance with their original terms, we would have recorded interest income, with respect to such loans, of $6.3 million for the year ended December 31, 2016, $5.4 million for the year ended December 31, 2015 and $5.6 million for the year ended December 31, 2014. This compares to actual payments recorded as interest income, with respect to such loans, of $2.8 million for the year ended December 31, 2016, $3.4 million for the year ended December 31, 2015 and $3.6 million for the year ended December 31, 2014.

The following table sets forth the changes in our allowance for loan losses by loan receivable segment for the years indicated.



		Mortgage Loans										Consumer and Other Loans
(In Thousands)	Residential				Multi- Family			Commercial Real Estate				Consumer and Other Loans				Total
Balance at December 31, 2013		$	80,337		$	36,703			$	13,136			$	8,824		$	139,000
Provision (credited) charged to operations		(23,464		)	5,337				6,949				1,709			(9,469		)
Charge-offs		(19,868		)	(4,365		)		(3,283		)		(2,073		)	(29,589		)
Recoveries		9,278			1,575				440				365			11,658
Balance at December 31, 2014		46,283			39,250				17,242				8,825			111,600
Provision charged (credited) to operations		1,520			(4,780		)		(6,810		)		(2,002		)	(12,072		)
Charge-offs		(6,149		)	(907		)		(302		)		(912		)	(8,270		)
Recoveries		3,297			1,981				1,087				377			6,742
Balance at December 31, 2015		44,951			35,544				11,217				6,288			98,000
Provision credited to operations		(3,980		)	(2,387		)		(2,458		)		(326		)	(9,151		)
Charge-offs		(7,977		)	(409		)		(441		)		(1,364		)	(10,191		)
Recoveries		3,445			2,153				981				863			7,442
Balance at December 31, 2016		$	36,439		$	34,901			$	9,299			$	5,461		$	86,100

The following table sets forth the balances of our residential interest-only mortgage loans at December 31, 2016 by the year in which such loans are scheduled to enter their amortization period.



(In Thousands)	Recorded Investment
Amortization scheduled to begin in:
2017 (1)	$	278,861
2018	33,960
2019	9,756
2020 and thereafter	7,970
Total	$	330,547


(1)	Includes $15.6 million of past due loans that were scheduled to enter amortization prior to December 31, 2016.

Pursuant to Federal Regulations and our policy, loans considered to be of lesser quality, are rated as special mention, substandard, doubtful or loss. A loan rated as special mention has potential weaknesses, which, if uncorrected, may result in the deterioration of the repayment prospects or in our credit position at some future date. A loan rated as substandard is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Loans rated as doubtful have all of the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full satisfaction of the loan amount, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans rated as loss are those considered uncollectable and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Those assets classified as substandard, doubtful or loss are considered adversely classified.

The following table sets forth the balances of our loan portfolio segments by credit quality indicator at the dates indicated.



	At December 31, 2016
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Home Equity and Other Consumer			Commercial and Industrial			Total
Not criticized	$	5,158,878		$	4,005,703		$	702,697		$	134,305		$	99,087	$	10,100,670
Criticized:
Special mention	14,922			24,804			9,235			550			647		50,158
Substandard	191,563			16,115			17,327			4,483			42		229,530
Doubtful	—			—			—			—			—		—
Total	$	5,365,363		$	4,046,622		$	729,259		$	139,338		$	99,776	$	10,380,358



	At December 31, 2015
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Home Equity and Other Consumer			Commercial and Industrial			Total
Not criticized	$	5,814,975		$	3,981,050		$	769,029		$	153,911		$	89,744	$	10,808,709
Criticized:
Special mention	16,837			14,931			20,441			502			1,427		54,138
Substandard	183,603			28,124			30,044			6,406			—		248,177
Doubtful	—			—			—			—			703		703
Total	$	6,015,415		$	4,024,105		$	819,514		$	160,819		$	91,874	$	11,111,727

The following tables set forth the balances of our loans receivable and the related allowance for loan loss allocation by segment and by the impairment methodology followed in determining the allowance for loan losses at the dates indicated.



	At December 31, 2016
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Consumer and Other Loans			Total
Loans:
Individually evaluated for impairment	$	192,427		$	7,112		$	10,033		$	4,091	$	213,663
Collectively evaluated for impairment	5,172,936			4,039,510			719,226			235,023		10,166,695
Total loans	$	5,365,363		$	4,046,622		$	729,259		$	239,114	$	10,380,358
Allowance for loan losses:
Individually evaluated for impairment	$	9,044		$	24		$	—		$	310	$	9,378
Collectively evaluated for impairment	27,395			34,877			9,299			5,151		76,722
Total allowance for loan losses	$	36,439		$	34,901		$	9,299		$	5,461	$	86,100



	At December 31, 2015
	Mortgage Loans								Consumer and Other Loans
(In Thousands)	Residential		Multi-Family			Commercial Real Estate			Consumer and Other Loans			Total
Loans:
Individually evaluated for impairment	$	192,914		$	24,643		$	14,993		$	4,968	$	237,518
Collectively evaluated for impairment	5,822,501			3,999,462			804,521			247,725		10,874,209
Total loans	$	6,015,415		$	4,024,105		$	819,514		$	252,693	$	11,111,727
Allowance for loan losses:
Individually evaluated for impairment	$	13,148		$	456		$	788		$	421	$	14,813
Collectively evaluated for impairment	31,803			35,088			10,429			5,867		83,187
Total allowance for loan losses	$	44,951		$	35,544		$	11,217		$	6,288	$	98,000

The following table summarizes information related to our impaired loans by segment and class at the dates indicated.



	At December 31,
	2016											2015
(In Thousands)	Unpaid Principal Balance		Recorded Investment			Related Allowance			Net Investment			Unpaid Principal Balance		Recorded Investment			Related Allowance			Net Investment
With an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only	$	21,202		$	16,535	$	(1,863	)		$	14,672	$	37,454		$	30,631	$	(4,051	)		$	26,580
Full documentation amortizing	88,106			79,584		(3,494		)		76,090		69,242			63,223		(2,534		)		60,689
Reduced documentation interest-only	28,637			23,090		(1,589		)		21,501		55,939			46,540		(4,253		)		42,287
Reduced documentation amortizing	79,670			70,623		(2,098		)		68,525		57,955			52,520		(2,310		)		50,210
Multi-family	2,427			2,432		(24		)		2,408		8,029			7,950		(456		)		7,494
Commercial real estate	—			—		—				—		6,651			6,723		(788		)		5,935
Consumer and other loans:
Home equity lines of credit	4,414			4,049		(310		)		3,739		5,295			4,968		(421		)		4,547
Without an allowance recorded:
Mortgage loans:
Residential:
Reduced documentation amortizing	2,965			2,595		—				2,595		—			—		—				—
Multi-family	5,272			4,680		—				4,680		19,523			16,693		—				16,693
Commercial real estate	11,791			10,033		—				10,033		11,104			8,270		—				8,270
Consumer and other loans:
Commercial and industrial	90			42		—				42		—			—		—				—
Total impaired loans	$	244,574		$	213,663	$	(9,378	)		$	204,285	$	271,192		$	237,518	$	(14,813	)		$	222,705

The following table sets forth the average recorded investment, interest income recognized and cash basis interest income related to our impaired loans by segment and class for the years indicated.



		For the Year Ended December 31,
		2016									2015									2014
(In Thousands)	Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income			Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income			Average Recorded Investment			Interest Income Recognized			Cash Basis Interest Income
With an allowance recorded:
Mortgage loans:
Residential:
Full documentation interest-only		$	24,322		$	364		$	380		$	39,506		$	860		$	877		$	84,264		$	1,860		$	1,920
Full documentation amortizing		72,452			2,359			2,388			52,426			1,893			1,920			38,340			1,491			1,498
Reduced documentation interest-only		34,171			861			851			66,321			1,910			1,923			112,172			3,646			3,671
Reduced documentation amortizing		64,230			2,454			2,472			30,310			1,927			1,936			22,137			655			653
Multi-family		4,845			145			149			14,390			415			417			30,291			1,320			1,339
Commercial real estate		1,673			—			—			11,875			333			348			17,341			1,065			1,154
Consumer and other loans:
Home equity lines of credit		4,445			124			126			5,585			48			54			5,202			45			54
Without an allowance recorded:
Mortgage loans:
Residential:
Full documentation amortizing		—			—			—			—			—			—			365			—			—
Reduced documentation amortizing		519			79			78			—			—			—			—			—			—
Multi-family		9,246			249			262			16,935			857			862			17,225			632			633
Commercial real estate		10,393			581			601			5,632			522			528			2,853			—			—
Consumer and other loans:
Commercial and industrial		65			2			2			—			—			—			—			—			—
Total impaired loans		$	226,361		$	7,218		$	7,309		$	242,980		$	8,765		$	8,865		$	330,190		$	10,714		$	10,922

The following table sets forth information about our mortgage loans receivable by segment and class at December 31, 2016, 2015 and 2014 which were modified in a TDR during the years indicated. Modifications in a TDR for the year ended December 31, 2016 included interest rate modifications of $8.3 million and concessions in the form of payment deferrals or term extensions of $2.5 million. In addition, $4.4 million of loans were classified as TDRs as a result of relief granted under Chapter 7 bankruptcy filing.



		Modifications During the Year Ended December 31,
		2016								2015								2014
(Dollars In Thousands)	Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2016			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2015			Number of Loans		Pre- Modification Recorded Investment			Recorded Investment at December 31, 2014
Residential:
Full documentation interest-only		9		$	3,683		$	3,362		12		$	4,620		$	4,496		21		$	9,244		$	8,726
Full documentation amortizing		21		7,493			7,291			19		5,063			4,894			4		889			812
Reduced documentation interest-only		5		2,127			2,078			10		3,431			3,429			19		6,819			6,774
Reduced documentation amortizing		6		1,741			1,713			7		2,911			2,902			5		809			745
Multi-family		1		338			330			—		—			—			4		2,501			1,981
Commercial real estate		1		515			441			2		2,902			2,835			3		2,482			2,433
Total		43		$	15,897		$	15,215		50		$	18,927		$	18,556		56		$	22,744		$	21,471



		During the Year Ended December 31,
		2016					2015					2014
(Dollars In Thousands)	Number of Loans		Recorded Investment at December 31, 2016			Number of Loans		Recorded Investment at December 31, 2015			Number of Loans		Recorded Investment at December 31, 2014
Residential:
Full documentation interest-only		3		$	1,628		6		$	2,240		1		$	621
Full documentation amortizing		8		2,937			6		1,749			2		319
Reduced documentation interest-only		1		483			2		380			3		1,123
Reduced documentation amortizing		—		—			2		606			—		—
Multi-family		1		330			—		—			3		1,400
Total		13		$	5,378		16		$	4,975		9		$	3,463

The following table details the percentage of our total residential mortgage loans at December 31, 2016 by state where we have a concentration of greater than 5% of our total residential mortgage loans or total non-performing residential mortgage loans.



State	Percent of Total Residential Loans			Percent of Total Non-Performing Residential Loans
New York		30.8	%		10.1	%
Connecticut		9.5			13.1
Massachusetts		8.3			4.1
Virginia		7.6			9.6
New Jersey		7.6			18.5
Illinois		7.5			13.7
Maryland		6.6			16.4
California		5.3			6.3

At December 31, 2016, substantially all of our multi-family and commercial real estate mortgage loans and all of our non-performing multi-family and commercial real estate mortgage loans were secured by properties located in the New York metropolitan area, which includes New York, New Jersey and Connecticut.